Question

Mira, Gopal and farhan were partners sharing profit and losses in the ratio of 3:2:1.on 31st March,2018 decided to change the profit sharing ratio to 5:3:2.on this date, the balance sheet showed deferred advertisement expenditure Rs 30000 and contingency reserve Rs 9000.Goodwill was valued at Rs 480000.pass necessary journal entry for the above transaction

Answer 1

$\sf\red{Mita's\:capital \: A/C\:Dr.\: \: \: \:15,000}$

$\sf\red{Gopal's\:capital \: A/C\:Dr.\: \: \: \:10,000}$

$\sf\red{Farhan's\:capital \: A/C\:Dr.\: \: \: \:5,000}$

$\sf\red{\: \: \: \: To \:Deferred \:Advertisement \: Expenditure \: A/C\: \: \: \:30,000}$

$\:$

$\sf\red{Contingency\:Reserve\: A/C\:Dr.\: \: \: \:9,000}$

$\sf\red{\: \: \: \:To \: Mita's \: Capital \: A/C \: : \: \: \: \: \: \:7.500}$

$\sf\red{\: \: \: \: To \: Gopal's\:capital \: A/C\: \: \: \: \: \: \: \:3,000}$

$\sf\red{\: \: \: \: To \: Farhan's\:capital \: A/C\: : \: \: \: \: \: \: \:1,500}$

$\:$

$\sf\gray{Sacrifing \: Ratio =}$

$\sf\red{Mita-}$

$\implies$$\sf{ \frac{3}{6} - \frac{5}{10} = \frac{15 - 15}{30 } = \frac{0}{30} \: (nil)}$

$\sf\red{Gopal -}$

$\implies$$\sf{\frac{2}{6} - \frac{3}{10} = \frac{10-9}{30 } = \frac{1}{30} \:(sacrifice)}$

$\sf\red{Farhan-}$

$\implies$$\sf{\frac{1}{6} - \frac{2}{10} = \frac{5-6}{30 } = \frac{-1}{30} \:(gain)}$

$\:$

$\sf\gray{Goodwill = 4,80,000 × \frac{1}{30}= 16,000}$

$\:$

$\sf\blue{Farhan's\:capital \: A/C\:Dr.\: \: \: \:16,000}$

$\sf\blue{\: \: \: \:To \: Gopal's\:capital \: A/C \: \: \: \: \: \:16,000}$